SCTI not valid if you have credit card insurance?

[Spizz]

I was looking at getting a SCTI policy for an upcoming trip, however was concerned to see in their PDS the following-

“If all or part of any valid claim is covered by another source,
including any travel, sickness, accident, health, or income
protection insurance policies, banks and/or credit card
providers, or you are eligible to receive any refunds, credits,
rebates or discounts, then you must provide us with those
details and we will only pay or reimburse the difference. If
you can claim against anyone else, you must claim against
them first before we will consider covering the difference.”

I choose a stand alone policy due to the higher limits and the option to pay extra for a $0 excess. However reading above it seems SCTI will pass me onto my credit card insurance with its $250 excess and lower limits? That can’t be right?

Seems 1cover even though not mentioned in their pds could be heading in the same direction as they ask in the claims form now for your first 6 digits of your credit card. Reason-

“Please let us know if you booked any of your flights, hotels or tours using a credit card. This will help us to know the best course of action to take if we need to recover costs.”

 

[Jacques Vert]

This is not an unusual clause; I've seen it in a number of policies.

If you look at the T&Cs of your credit card insurance, including the activation and prior medical conditions sections, you may not be covered by the CC insurance anyway!

If you are, then the insurance companies can argue it out between themselves as to who pays what %age; at the end of the day you shouldn't be too far out of pocket.

JV

 

[theblank]

I choose a stand alone policy due to the higher limits and the option to pay extra for a $0 excess. However reading above it seems SCTI will pass me onto my credit card insurance with its $250 excess and lower limits? That can’t be right?

they are saying that if they will payout $1000, and the other insurer pays out $500, they will get the $500 from them.

 

[serfty]

As mentioned it is quite common.

If you need to make a claim, make sure you have no other cover. My trips are generally composed of a mix of points/revenue bookings and with that it is rare that any CC insurance could be applicable.

I believe it goes down to claiming where you need to declare that there is no other applicable cover to the insured event.

 

[Pushka]

This is not an unusual clause; I've seen it in a number of policies.

If you look at the T&Cs of your credit card insurance, including the activation and prior medical conditions sections, you may not be covered by the CC insurance anyway!

If you are, then the insurance companies can argue it out between themselves as to who pays what %age; at the end of the day you shouldn't be to far out of pocket.

JV

Or simply don’t claim with both but just the one that gives the cover for that particular event. Claiming with both is a red flag to me and will only delay settlement and you get caught on the middle. Don’t do it. The company you claim for does not need to know the intricacies of your financial arrangements.

There is no law that means you have to claim with a credit card or other insurance company before their claim can be paid. You just can’t claim with both for the same cover.

 

[love_the_life]

Or simply don’t claim with both but just the one that gives the cover for that particular event. Claiming with both is a red flag to me and will only delay settlement and you get caught on the middle. Don’t do it. The company you claim for does not need to know the intricacies of your financial arrangements.

There is no law that means you have to claim with a credit card or other insurance company before their claim can be paid. You just can’t claim with both for the same cover.

Though the quoted text from SCTI is a bit vague. It says if any part of a valid claim is covered from another source, so might mean if you are able to claim elsewhere.

 

[serfty]

Though the quoted text from SCTI is a bit vague. It says if any part of a valid claim is covered from another source, so might mean if you are able to claim elsewhere.

The reality is that you 'decide' that after your 'review' you are not covered under any other policy and proceed with your claim. At no stage further during the process do you mention any other policy from any other underwriter.

 

[Pushka]

Though the quoted text from SCTI is a bit vague. It says if any part of a valid claim is covered from another source, so might mean if you are able to claim elsewhere.

I can’t see where they have any legal right to demand that. Everyone has a credit card and this is an out for anyone who uses one. Can’t be legal. It’s a scare tactic.

 

[love_the_life]

I can’t see where they have any legal right to demand that. Everyone has a credit card and this is an out for anyone who uses one. Can’t be legal. It’s a scare tactic.

May well be an ambit claim but not everyone’s CC provides TI.

 

[RB]

I believe that offset clauses are very common in many insurance types. An underlying reason being that you should not be "better off" in the event of having to make a claim-you receive the compensation due but not in excess to your actual losses. Income Protection insurance certainly has offsets as there needs to be an incentive for people to go back to work- any Workcover and Centrelink will impact the insurance benefit

 

[Lynda2475]

Clauses that stop you from claiming from multiple insurers for the same event are fair, a clause such as this forcing you to use a lesser policy and incur an excess instead of the one you have paid for is not. If you rCC insurance and the purchased insurance both contain the clause you are in a no-win situation.

For international travel I always purchases a paid policy with superior coverage to free CC insurance, and would only even attempt to use the freebie if the paid insurance declined the claim.

There is no law against having multiple policies, only against claiming for the same item twice.

 

[Andz]

The clause is clear, if you purchased a flight with a credit card, that has insurance, and you are eligible for this insurance, you need to claim from the CC insurance first then claim any differences from the secondary insurance. Tricky decision to what insurance to rely on, as non CC insurance has more benefits than CC insurance.

I see non CC insurance dying in the future. In some countries you get travel insurance included in you Private Health cover. This will probably be the future product.

 

[Lynda2475]

The clause is clear, if you purchased a flight with a credit card, that has insurance, and you are eligible for this insurance, you need to claim from the CC insurance first then claim any differences from the secondary insurance.

Well not necessarily as some CC require you to notify them to activate the insurance coverage (so if you dont call it isnt activated), and yet others can be activated by purchasing a minimum $ amount for your trip i.e. land components (not necessarily flights). It becomes a minefield where you have various flights and land components purchased on different cards all for the same trip - who is the first insurer then?

I worry how this would pan out in practice, for example most CC insurance caps medical at $1m, but that is inadequate in the US which is why one pays for a policy with unlimited medical. The hospital wont treat you without proof of ability to pay i.e. insurance and request permission to treat under the policy. Doubtful hospital are going to deal with multiple insurers, or that an individual can afford to pay the ut of pockets which could easily be $100k+ before being able to make the second claim.

More over it would be better to have a system where you decline CC insurance where you have a paid policy - so only one insurer to deal with.

 

[Pushka]

Well not necessarily as some CC require you to notify them to activate the insurance coverage (so if you dont call it isnt activated), and yet others can be activated by purchasing a minimum $ amount for your trip i.e. land components (not necessarily flights). It becomes a minefield where you have various flights and land components purchased on different cards all for the same trip - who is the first insurer then?

I worry how this would pan out in practice, for example most CC insurance caps medical at $1m, but that is inadequate in the US which is why one pays for a policy with unlimited medical. The hospital wont treat you without proof of ability to pay i.e. insurance and request permission to treat under the policy. Doubtful hospital are going to deal with multiple insurers, or that an individual can afford to pay the ut of pockets which could easily be $100k+ before being able to make the second claim.

More over it would be better to have a system where you decline CC insurance where you have a paid policy - so only one insurer to deal with.

It’s curious isn’t it. When claiming on CC Travel Insurance you have to go to great lengths to prove that you used the card to purchase something for the trip. So if you didn’t want to claim on the card but use a stand-alone then there is no way any Insurance company could prove that CC Insurance was in place at all and it’s something you will not tell them either.

I have to purchase additional insurance due to pre existing and I know CC Insurance is inadequate. However they did pay expenses when the origin of the pre existing appeared prior to a US trip that had to be cancelled.

 

[JohnK]

I've never been asked to claim with another source first.

I will just continue to claim on my annual travel insurance policy.

 

[Spizz]

they are saying that if they will payout $1000, and the other insurer pays out $500, they will get the $500 from them.

I don't want to deal with 2 insurances companies and 2 different claims process. Also in your above scenario how would that work if I have paid extra for a $0 excess from SCTI for my standalone policy, yet the credit card has a $250 excess. That is why I would of purchases a standalone policy.

Also if SCTI tell you to use your CC insurances first, will SCTI reimburse you the policy cost since you can't use it?

 

[Spizz]

Well not necessarily as some CC require you to notify them to activate the insurance coverage (so if you dont call it isnt activated), and yet others can be activated by purchasing a minimum $ amount for your trip i.e. land components (not necessarily flights). It becomes a minefield where you have various flights and land components purchased on different cards all for the same trip - who is the first insurer then?

I worry how this would pan out in practice, for example most CC insurance caps medical at $1m, but that is inadequate in the US which is why one pays for a policy with unlimited medical. The hospital wont treat you without proof of ability to pay i.e. insurance and request permission to treat under the policy. Doubtful hospital are going to deal with multiple insurers, or that an individual can afford to pay the ut of pockets which could easily be $100k+ before being able to make the second claim.

More over it would be better to have a system where you decline CC insurance where you have a paid policy - so only one insurer to deal with.

Well said.

 

[Pushka]

I don't want to deal with 2 insurances companies and 2 different claims process. Also in your above scenario how would that work if I have paid extra for a $0 excess from SCTI for my standalone policy, yet the credit card has a $250 excess. That is why I would of purchases a standalone policy.

Also if SCTI tell you to use your CC insurances first, will SCTI reimburse you the policy cost since you can't use it?

Just tell them that your CC doesn’t apply because - in my case it won’t cover for pre existing, but you could also say you didn’t meet the required spend, or you didn’t notify them to activate it or - heck, I don’t own one! There is no way they are entitled to know what credit cards you have and each one of them has different criteria for claims.

 

[serfty]

I see non CC insurance dying in the future. In some countries you get travel insurance included in you Private Health cover. This will probably be the future product.

I don't - much of my travel consists of a mix of paid and award one-way/return/multi segment bookings; spanning several months with separate 'trips'; often nested and often paid using different methods.

i.e. It is common that any CC insurance would apply in relation to my travel.

 

[Spizz]

Just tell them that your CC doesn’t apply because - in my case it won’t cover for pre existing, but you could also say you didn’t meet the required spend, or you didn’t notify them to activate it or - heck, I don’t own one! There is no way they are entitled to know what credit cards you have and each one of them has different criteria for claims.

Unless you used one to pay for your SCTI poilcy